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2012-13 Insurers Guide

April 2013 Version 9

2013 The Law Society. All rights reserved.

Contents
Status of this guide .................................................................................................. 2 Insurers by firm size
Sole practitioners ............................................................................................................... 4 2-3 partners ....................................................................................................................... 5 4-10 partners ..................................................................................................................... 6 11+ partners ...................................................................................................................... 8

Appendix A: List of main solicitors PII brokers in 2012 ....................................... 9 Appendix B: Insurers unconfirmed entries .......................................................... 10 Appendix C: Main rating companies .................................................................... 11

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Status of this guide


This guide is a non-exhaustive list of the insurers that have indicated that they intend to apply to become qualifying insurers for 2012-13 indemnity year. This guide also provides a list of the insurers financial security rating and identifies which insurers are unrated. The financial security of your insurer is important, see further Law Society advice. Qualifying insurers are insurers that are authorised by the FSA to conduct general insurance business in the UK and have signed the Solicitors Regulation Authority (SRA)s Qualifying Insurer's Agreement (QIA). The QIA is a contract that is entered into each year that requires insurers to offer solicitors PII policies. This is the only requirement that the SRA places on insurers. The SRA does not does not undertake solvency checks on insurers and does not require a minimum level of financial security for participation in the solicitors PII market. As such, the Law Society has asked the SRA to change the name to participating insurer for the 2013 renewal as this is more reflective of insurers actual role. This guide indicates the practice sizes for which the insurers have stated that they are willing to consider providing professional indemnity insurance cover. We have also indicated when we have obtained this information from public sources but were unable to confirm this directly with the insurer. It also lists any other restrictions that apply to the practices that these insurers are willing to consider and states how you should approach these insurers. Most of the insurers can only be approached via an insurance broker (this is listed as via broker in the approach column). Where possible, and to the extent that insurers have been prepared to provide us with this information or it was able to be verified with information in the public domain, we have indicated which brokers have direct access to each insurer. Some brokers will only disclose their market access on request so we recommend that you ask your broker for further details if they are not listed. A list of the top 10 brokers (by number of firms) within the solicitors PII market in 2012 is available for reference at Appendix A. It may also be possible to access insurers through other brokers or indirectly via sub-brokers. For further information about sub-brokers, see the Law Societys PII Buyers Guide. This guide constitutes a compilation of the information provided to the Law Society by the insurers were who were willing to participate in its production. There may be other insurers in the solicitors' PII market that are willing to insure your practice but have not provided an entry for this guide. A list of these insurers is at Appendix B. This guide is for reference only and will be updated for the 2013 renewal season once the insurers participating become known. For this reason, we advise you to check our website throughout the renewal season to ensure that you are using the most up-to-date version of this guide. You can also follow us on Twitter at LSRegAffairs and Practice Update to keep updated. While care has been taken to ensure that the information in this guide is accurate, up-to-date and useful, the Law Society will not accept any legal liability nor warrant the accuracy of the information within. You should ask your broker for further information and advice about the most appropriate insurer for your practice. For more information about choosing a broker see the Societys PII Buyers Guide.

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Please note: Balva Insurance Company AAS has had its licence to write business in the UK suspended by the Latvian regulator, the Financial and Capital Market Commission as at 16 April 2013. While this does not affect its current policies, it may impact on its ability to write solicitors PII in the future. The Law Society will keep the profession updated on developments see: http://www.fktk.lv/en/publications/press_releases/2013-0416_activities_of_ijsc_balva_suspended_temporarily_operating_licence_retained/

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Insurers by firm size - Sole practitioners


Insurer Financial security rating / provider Unrated FSCS Restrictions on type of firm / work Approach (Direct or via broker) Via broker Which brokers have direct access?

Alpha Insurance A/S

Yes

None

Brokers via Indemnity Risk Solutions (Ink Underwriting Agencies Ltd) JLT

AmTrust Limited

Europe

A A.M Best A A.M Best A+ S&P

Yes

Reviewed on a case by case basis Unknown

Via broker

Axis Specialty Group Plc

Yes

Via broker

Prime Professions*

Enterprise Company European Insurance h/f

Insurance

Unrated

Yes

None

Via broker

Various brokers

Risk Company

Unrated

Yes

None

Via broker

Bar Professions

International Insurance Company of Hannover Limited

A A.M Best AAS&P A A.M Best AS&P AA S&P A A.M Best A+ S&P

Yes

Reviewed on a case by case basis

Via broker

Lockton

Liberty Insurance Limited

Mutual Europe

Yes

Reviewed on a case by case basis

Via broker (unless already a direct client) Direct and via broker Via broker

Prime Professions

Travelers Insurance Company Limited QBE Insurance (Europe) Limited

Yes

None

All brokers Agency

with

Travelers

Yes

Reviewed on a case by case basis

Aon Risk Solutions*

W R Insurance Limited

Berkley (Europe)

A A.M Best A A.M Best A S&P AAS&P

Yes

Personal injury work only. No past conveyancing. Reviewed on a case by case basis

Via broker

Various*

XL Insurance Company Limited

Yes

Via broker

Aon Risk Solutions

Zurich Insurance plc

Yes

Not accepting new business

Via broker (unless already a direct client)

Various (Brokers will confirm if they have access)

*Entry not confirmed by insurer / broker

2-3 partners
Insurer Financial security rating provider Insurance Unrated FSCS / Yes Restrictions on type of firm / work None Approach Which brokers have direct access?

Alpha A/S

Via broker

Brokers via Indemnity Risk Solutions (Ink Underwriting Agencies Ltd) Prime Professions*

Axis Specialty Group Plc

A A.M Best A+ S&P Unrated

Yes

Unknown

Via broker

Elite Insurance Company Limited

Yes

Firms who predominately carry out personal injury work

Via broker

Prime Professions Total Insurance QLP Brunel Gallagher Heaths Windsor

Enterprise Insurance Company European Insurance Company h/f Risk

Unrated

Yes

None

Via broker

Various brokers

Unrated

Yes

None

Via broker

Bar Professions

International Insurance Company of Hannover Limited Liberty Insurance Limited Mutual Europe

A A.M Best AAS&P A A.M Best AS&P AA S&P

Yes

Reviewed on a case by case basis

Via broker

Lockton

Yes

Reviewed on a case by case basis

Via broker (unless already a direct client) Direct and via broker

Marsh

Travelers Insurance Company Limited W R Berkley Insurance (Europe) Limited XL Insurance Company Limited

Yes

None

All brokers Agency

with

Travelers

A A.M Best A A.M Best A S&P AAS&P

Yes

Personal injury work only. No past conveyancing. Reviewed on a case by case basis

Via broker

Various*

Yes

Via broker

Aon Risk Solutions

Zurich plc

Insurance

Yes

Not accepting new business

Via broker (unless already a client)

Various (Brokers will confirm if they have access)

*Entry not confirmed by insurer / broker Version 9 5

4-10 partners
Insurer Financial security rating / provider A+ A.M Best FSCS Restrictions on type of firm / work Approach Which brokers have direct access?

Allianz Global Corporate & Specialty Ag

Yes

None

Via broker

Declined to comment

Axis Specialty Group Plc

A A.M Best A+ S&P Unrated

Yes

Unknown

Via broker

4-6 partners Lockton* 7-10 partners Windsor*

Balva Insurance Company AAS Chartis Insurance UK Limited Elite Insurance Company Limited

Yes

None

Via broker

Bar Professions

A S&P Unrated

Yes

None

Unknown

Unknown*

Yes

Firms with up to 8 partners predominately personal injury work

Via broker

Prime Professions Total Insurance QLP Brunel Gallagher Heaths Windsor

Enterprise Insurance Company European Risk Insurance Company h/f First Title Insurance plc

Unrated

Yes

None

Via broker

Various brokers

Unrated

Yes

None

Via broker

Bar Professions

AAM Best

Yes

None

Via broker

Brokers via Indemnity Risk Solutions (Ink Underwriting Agencies Ltd) Lockton

International Insurance Company of Hannover Limited Liberty Mutual Insurance Europe Limited

A A.M Best AAS&P A A.M Best AS&P AA S&P

Yes

Reviewed on a case by case basis

Via broker

Yes

4-5 partners only. Reviewed on a case by case basis.

Via broker (unless already a direct client) Direct and via broker

Lockton

Travelers Insurance Company Limited QBE Insurance (Europe) Limited Version 9

Yes

None

All brokers with Travelers Agency

A A.M Best A+ S&P

Yes

Unknown

Via broker

Aon Risk Solutions*

Insurer

Financial security rating / provider A A.M Best A A.M Best A S&P AAS&P

FSCS

Restrictions on type of firm / work

Approach

Which brokers have direct access?

W R Berkley Insurance (Europe) Limited XL Insurance Company Limited

Yes

Personal injury work only. No past conveyancing. Reviewed on a case by case basis

Via broker

Various*

Yes

Via broker

Marsh Insurance Brokers

Zurich Insurance plc

Yes

Not accepting business

new

Via broker (unless already a direct client)

Various (Brokers will confirm if they have access)

*Entry not confirmed by insurer / broker

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11+ partners
Insurer Financial security rating / provider A+ A.M Best FSCS Restrictions on type of firm / work None Approach Which brokers have direct access?

Allianz Global Corporate & Specialty Ag

Yes

Via broker

Declined to comment

Axis Specialty Group Plc

A A.M Best A+ S&P

Yes

Unknown

Via broker

Various brokers*

Balva Insurance Company AAS Chartis Limited Insurance UK

Unrated

Yes

None

Via broker

Bar Professions

A S&P Unrated

Yes

None

Unknown

Unknown*

Enterprise Company

Insurance

Yes

None

Via broker

Various brokers

European Risk Insurance Company h/f First Title Insurance plc

Unrated

Yes

None

Via broker

Bar Professions

AAM Best

Yes

None

Via broker

Brokers via Indemnity Risk Solutions (Ink Underwriting Agencies Ltd) Lockton

International Insurance Company of Hannover Limited

A A.M Best AAS&P AA S&P A A.M Best A+ S&P

Yes

Reviewed on a case by case basis

Via broker

Travelers Insurance Company Limited QBE Insurance (Europe) Limited

Yes

None

Direct and via broker Unknown

All brokers with Travelers Agency Unknown*

Yes

Unknown

W R Berkley Insurance (Europe) Limited

A A.M Best

Yes

Personal injury work only. No past conveyancing. Strictly 11-25 partner practices Reviewed on a case by case basis

Via broker

Various*

XL Insurance Company Limited

A A.M Best A S&P AAS&P

Yes

Via broker

Paragon Insurance Brokers

Zurich Insurance plc

Yes

None

Via broker (unless already a direct client)

Various (Brokers will confirm if they have access)

*Entry not confirmed by insurer / broker Version 9 8

Appendix A: List of main solicitors PII brokers in 2012


This is a list of main brokers active in the solicitors PII market last year as reported in the Law Societys 2012-13 PII survey. These were the most frequently used brokers to find cover according to those solicitors surveyed.
Aon Risk Solutions Prime Professions Lockton Marsh Bar Professions Hera Indemnity Windsor/Howden Giles Brunel Professional Risks Ltd Professional Indemnity Company

Reference:

IFF report, Professional Indemnity Insurance Survey 2012, p. 18. The full survey is available at: http://www.lawsociety.org.uk/advice/regulation/pii/surveys/

For more information about choosing the right broker for your firm, see the PII Buyers Guide www.lawsociety.org.uk/pii

Appendix B: Insurers unconfirmed entries


Insurer Aviva Insurance UK Limited Barbican Syndicate 1955 - Libra Chartis Insurance UK Limited Reason No longer writing professional indemnity insurance lines, see article Did not respond, no publically available information Did not respond, entry based on publically available information Did not respond, no publically available information Not accepting new business Did not respond, no publically available information Did not respond, entry based on publically available information Did not respond, no pubically available information Not accepting new business Did not respond, entry based on publically available information

Chubb Insurance Company of Europe SE Lemma Europe Insurance Company Limited Pembroke Syndicate 4000 QBE Insurance (Europe) Limited

QBE Syndicate 386 RSA Insurance W R Berkley Insurance (Europe)

Based on the SRAs list of insurers as at 27 June 2012. A complete list and contact details of all insurers is available from the SRA website.

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Appendix C: Main rating companies


As at April 2013

AM Best
Secure
A++, A+ (Superior) A, A- (Excellent) B++, B+ (Good)

Vulnerable
B, B- (Fair) C++, C+ (Marginal) C, C- (Weak) D (Poor) E (Under Regulatory Supervision) F (In Liquidation) S (Suspended)

Standard and Poors


Long-term ratings
Investment grade AAA Extremely strong capacity to meet financial commitments. Highest rating AA Very strong capacity to meet financial commitments A Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances BBB Adequate capacity to meet financial commitments, but more subject to adverse economic conditions BBB- Considered lowest investment grade by market participants Speculative grade BB+ Considered highest speculative grade by market participants BB Less vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and economic conditions B More vulnerable to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments CCC Currently vulnerable and dependent on favorable business, financial and economic conditions to meet financial commitments CC Currently highly vulnerable C Currently highly vulnerable obligations and other defined circumstances. D Payments default on financial commitments
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus ( -) sign to show relative standing within the major rating categories.

For more information about ratings and the importance of an insurers financial security, see: www.lawsociety.org.uk/insuranceadvice

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PII help & support


www.lawsociety.org.uk/pii
Advice on insurers financial security
Importance of financial security this guide is available for download at: http://www.lawsociety.org.uk/advice/articles/pii-insurer-insolvency/ Insurers guide including financial security rating http://www.lawsociety.org.uk/advice/documents/pii-insurers--guide/ (PDF) Insolvency of a qualifying insurer practice note http://www.lawsociety.org.uk/advice/practice-notes/insolvent-qualifying-insurer/ Information for solicitors with Lemma policies http://www.lawsociety.org.uk/representation/articles/firms-claims-outstanding-lemma/ Information for solicitors with Quinn policies http://www.lawsociety.org.uk/advice/articles/information-for-quinn-policyholders/

PII advice
PII practice note outlines the regulatory requirement to obtain PII and provides an introduction to the application process and market-related issues: http://www.lawsociety.org.uk/advice/practice-notes/professional-indemnity-insurance/ Excess layer / top up cover This guide outlines what should be considered when assessing how adequate your PII arrangements are and highlights situations where it may be prudent to purchase excess layer cover above the minimum required by the SRA. http://www.lawsociety.org.uk/advice/articles/pii-excess-layer/ Setting up practice regulatory requirements a guide on the different types of legal practice (from sole practitioner to an alternative business structure) and PII tips for new firms: http://www.lawsociety.org.uk/advice/practice-notes/setting-up-a-practice-regulatoryrequirements/ Retirement calculator a tool to assist solicitors to work out an indicative figure that should be saved each year as part of their retirement planning to prepare for the likely cost of run-off cover under the mandatory PII policy. http://www.lawsociety.org.uk/advice/articles/pii-retirement-calculator/ PII Buyers Guide a useful guide that explains the different types of intermediaries in the market and has tips to help solicitors get the most out of their relationship with brokers. http://www.lawsociety.org.uk/advice/documents/pii-buyers--guide/ Transparency campaign The Society encourages all solicitors to ask their broker what they are receiving in commission this renewal. This disclosure can be used as part of a conversation starter about what level and type of service brokers are providing. http://www.lawsociety.org.uk/representation/articles/broker-transparency-campaign/ Insurers Guide a non-exhaustive list of those insurers who are participating in the market each year. It sets out the segments of the market they are prepared to write and how solicitors can access them (i.e. directly or via a broker). http://www.lawsociety.org.uk/advice/documents/pii-insurers--guide/

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Insurance matters
A free magazine with latest market intelligence www.lawsociety.org.uk/insurancematters

Annual survey
See how your firms experience measures up with the market trends. http://www.lawsociety.org.uk/advice/regulation/pii/surveys/

Frequently asked questions


http://www.lawsociety.org.uk/advice/articles/pii-faqs/

Information for firms ceasing to practice or having difficulties


Assigned risk pool & 2013 changes http://www.lawsociety.org.uk/advice/articles/assigned-risks-pool/ Closing down your practice: regulatory requirements http://www.lawsociety.org.uk/advice/practice-notes/closing-down-your-practice/ Run-off cover http://www.lawsociety.org.uk/advice/articles/run-off-cover/

Latest news
www.lawsociety.org.uk/professionalindemnity

Other organisations
You can obtain further information relating to brokers and PII in general from the following websites:

Association of British Insurers www.abi.org.uk British Insurance Brokers Association www.biba.org.uk Financial Ombudsman Service www.financial-ombudsman.org.uk Financial Conduct Authority www.fca.org.uk Solicitors Regulation Authority www.sra.org.uk

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